SBI Funds Management Limited · NSE:SBIFUNDS
SBI Funds Management — Investor Presentation (April 2024)
32 slides from SBI Funds Management's investor presentation, April 2024
Slide 1: Long term Capital appreciation - Scheme Riskometer
Scheme Riskometer: First Tier Benchmark Riskometer: NIFTY 500 TRI Long term Capital appreciation Investment in equity and equity related instruments of companies engaged in and/ or expected to benefit from adoption of innovative strategies & theme The benchmark riskometer is at Very High risk
Slide 2: Communication from months to seconds
Communication from months to seconds Telegraphs Radio Cell Phones Smartphones 1814 1844 1876 1904 1927 1973 1974 2007 Steam-Powered Telephone Television Personal Printing Press Computer Source: education.cfr.org’ This information is for illustrative purposes only. There is no assurance that the Fund
Slide 3: Storage from Bits to Terabyte
Storage from Bits to Terabyte Drum Memory Floppy Disks Optical Disks Cloud Storage 1947 1950 1951 1976 1980 1982 2000 2006 Williams- Tape Drives Hard Disks Memory Drives Kilburn Tube Source: Echoglobal; This information is for illustrative purposes only. There is no assurance that the Funds will inv
Slide 4: Music from boxes to digital streaming
Music from boxes to digital streaming Phonograph Walkman iPOD 1811 1877 1954 1979 1998 2002 2007 Music Box Transistor Radio Mp3 Player Smartphones Source: blackpoolgrand.co.uk; This information is for illustrative purposes only. There is no assurance that the Funds will invest in any or all of these
Slide 5: Pace of Innovation is accelerating
Pace of Innovation is accelerating Median age of S&P Median age of S&P Average S&P Average age of a 5-year valuation growth top 10, 2000 top 10, 2018 500 tenure by 2027 unicorn start-up in post-IPO unicorns1 85 33 12 6 8.7 years years years years x The increasing pace of innovation is disrupting bus
Slide 6: Innovation – A key disruptor across sectors
Innovation – A key disruptor across sectors Financial Services Consumption UPI Energy Quick Commerce Automobiles Block chain Hydrogen Augmented reality Electric Vehicles Self Drive cars Payment Aggregator Battery Storage Omnichannel integration Hybrid vehicles Grid integration Technology Healthcare
Slide 7: Factors influencing India Innovation Story
Factors influencing India Innovation Story Booming Startup Ecosystem Growing Consumer Market Inherent Talent Pool Strong Digital Infrastructure Government Initiatives Strong Funding Ecosystem India’s position in the Global Innovation Index* has improved to 40th rank in 2023 from 81st in 2015. Due to
Slide 8: Booming Startup Ecosystem
Booming Startup Ecosystem E-commerce Fintech Enterprise Consumer Soonicorn mix across key segments Tech Services Edtech, 6.2% Media & Entertainment, Fintech, 6.2% 31.9% 7 7 Enterprise Tech,11.5% 36 13 Media & Logistics Health Edtech Entertainment tech 19 31 Others, Ecommerce, 27.4% 16.8% India has t
Slide 9: Inherent Talent Pool
Inherent Talent Pool Global Tech Talent in Tech Industry ● 2.5 million STEM* graduates every year - one of the largest sources of 40% Size of Bubble indicates the Total Tech Talent supply STEM talent in the world. Demand Supply Gap, as a % of Supply 38% as during July 2022 ● India boasts a significan
Slide 10: Strong Digital Infrastructure
Strong Digital Infrastructure 800 Mn 138 Data Centers with Smartphones 737+MW Capacity 118 Bn UPI Transactions 7k+ 5G in 2023 Enabled Cities 646.7k Km Optical 338 Mn Digital Fiber Laid Payment Users 10Mn+ Active $0.16 - Cost of 5G Devices 1GB Internet India’s digital ecosystem has seen rapid expansi
Slide 11: Growing Consumer Market
Growing Consumer Market Indian Households based on Income Households 219M 308M 356M Rich Rich Rich 2M 11M 35M Mid. Mid. Mid. Class Class Class 30M 91M 165M Aspirer Aspirer Aspirer 121M 161M 136M Destitute Destitute Destitute 66M 45M 20M 2005 2020 2031F India has a large and growing consumer market,
Slide 12: Government Initiatives
Government Initiatives Total Outlay Planned PLI Scheme (` Bn) Startup India LSEM and IT Hardware 460 Initiatives KSM/DI/API 69 01 Pharmaceutical drugs 150 Atal Innovation 02 Mission Manufacturing of Medical Devices 34 White Goods 62 Food Processing 108 National Innovation Telecom 122 03 Foundation I
Slide 13: Strong Funding Ecosystem
Strong Funding Ecosystem Startups Sector Listing Year Indian Startup Funding D2C 2023 Logistics 2022 160 146 148 FinTech 2022 136 140 Marketplace 2021 120 111 EnterpriseTech 2021 100 FinTech 2021 80 69 58 E-Commerce 2021 60 45 40 33 FoodTech 2021 20 20 14 5 FinTech 2021 0 EnterpriseTech 2021 2021 20
Slide 14: Theme Illustrations
Theme Illustrations SBI Funds Management Limited (A joint venture between SBI & AMUNDI)
Slide 15: Ecommerce
Ecommerce Ecommerce as a percentage of Ecommerce Market Opportunity ($ Bn) total retail sales 450 400 40.0% 400 35.0% 31.9% 350 330 C AGR 30.0% 300 19% 270 25.0% 26.8% 250 220 20.0% 200 180 145 15.0% 150 116 123 10.0% 7.5% 100 5.0% 50 0.0% 0 2011 2021 2012 2022 2024E 2025E 2026E 2027E 2010 2014 2020
Slide 16: Adtech
Adtech Digital Advertising Share of Total Advertising Spend 90% 80% 70% 60% 50% 40% 30% 20% 10% CY21 CY22 CY24E CY20 CY17 CY18 CY19 CY23 USA China India The share of digital advertising spend in India is still significantly low. On the back of rising internet penetration, the Adtech market in India i
Slide 17: Cloud Computing
Cloud Computing Global Cloud System Infrastructure Cloud Spending as a % Services market ($ Bn) Overall Infra spends 400 50% 46% 355 43% 45% 350 39% 296 40% 36% 300 35% 31% 250 239 27% 30% 190 25% 22% 200 148 20% 17% 150 120 15% 13% 93 10% 100 8% 64 10% 46 50 25 32 5% - 0% 2021 2022 2024E 2025E 2026
Slide 18: Electric Vehicles
Electric Vehicles Electric Passenger Vehicle Domestic Electric 2W & 4W Global Penetration penetration 2W 4W 6 5.4 5 4.5 % share of total units 4 3 2.3 1.9 2 1.3 1 0.6 0.4 0.2 0.1 0.1 0.1 0.1 0 FY19 FY20 FY21 FY22 FY23 FY24 India's EV market is expected to grow at an impressive CAGR of 49% from 2022
Slide 19: FinTech
FinTech Online/ Digital spends as % of Digital Retail Payment private consumption expenditure Transactions Total Online/ Digital Spends - india 15Bn 114Bn Others, 2.28 90.0 60% NACH, 80.0 Others, 3.42 50% 70.0 0.15 NACH, IMPS, 60.0 40% 2.55 5.70 IMPS, 50.0 NEFT, 30% 1.05 40.0 5.70 30.0 20% NEFT, n 1
Slide 20: Clean Energy
Clean Energy Green Hydrogen Production Cost Transmission length vs. Installed generation Estimates ($/kg) capacity (ckm/GW) 2.50 600 US 2.1 662 2.00 2.0 2.0 India 1,142 1.8 1.8 1.8 1.6 1.6 1.7 500 1.6 1.6 1.5 1.5 1.50 1.3 1.4 1.4 1.4 1.4 1.4 1.3 1.2 1.3 1.2 400 1.1 0.9 1.0 1.0 1.0 1.0 1.0 000' ckm 1
Slide 21: About the Fund
About the Fund SBI Funds Management Limited (A joint venture between SBI & AMUNDI)
Slide 22: Investment Strategy
Investment Strategy Product/ Service Innovators Companies that develop new products or services or significantly invest in R&D for new innovations. They challenge existing markets or create entirely new categories. Process Innovators Companies that innovate new processes, potentially disrupting exist
Slide 23: Product/ Service Innovators – Case Study
Product/ Service Innovators – Case Study The innovative/ novel drugs segment grew Leading to overall expansion much faster than the generic drugs segment in gross margins % 80% 1200 20% 78.0% 18% 78% 1000 Total Rev CAGR FY15-24 : 7% Innovative/ novel drugs segment CAGR: 32% 16% 14% 76% 800 75.8% 75.
Slide 24: Process Innovators – Case Study
Process Innovators – Case Study The company garnered 2x mkt share compared And continues to grow faster to its nearest competition in 3PL space than its competition 50 46 35 45 31 30 Revenue Growth % 40 Market Share (%) 35 25 30 23 23 20 25 20 15 15 10 8 9 10 5 5 2 1 0 0 Innovator Competitor 1 Compe
Slide 25: Innovation Adaptors – Case Study
Innovation Adaptors – Case Study Despite being a late entrant, the company And repeated the same in the became a market leader quick delivery segment 90% 80% 80% 75% 70% 70% 75% 56% 60% 60% 53% 50% 50% 40% 40% 40% 43% 40% 36% 32% 32% 30% 30% 25% 28% 24% 20% 20% 15% 10% 10% 0% 1% 0% 0% 0% FY15 FY16 F
Slide 26: How do we identify Innovative companies
How do we identify Innovative companies Target businesses adopting automation, AI, or sustainable practices in their processes Identify incumbent companies that that lead to cost reduction & improved demonstrate agility in adapting to new efficiency & value enhancement. technologies or business models
Slide 27: Portfolio Construction Approach
Portfolio Construction Approach Min 80% of net assets investing into companies falling into innovation theme buckets Upto 35% of net assets investing into global stocks aligned with the underlying theme True to its label diversified portfolio investing across sectors & Market cap Aims to have a portf
Slide 28: Fund Facts & Product Suitability
Fund Facts & Product Suitability SBI Funds Management Limited (A joint venture between SBI & AMUNDI)
Slide 29: Suitable for…
Suitable for… Investment Opportunity Investors looking for a fund that consistently seeks out investment opportunities in upcoming trends and disruptive business ideas will find this fund true to label. Investors seeking capital appreciation through investments in forward-looking business ideas and a
Slide 30: Fund Facts
Fund Facts Name First Tier Benchmark Index SBI Innovative Opportunities Fund NIFTY 500 TRI An open-ended equity scheme following innovation theme. Category Minimum Application^ Thematic ` 5,000/- and in multiples of ` 1 thereafter Fund Manager& Minimum Monthly SIP* Mr. Prasad Padala Minimum ` 500 &
Slide 31: Why SBIFML
Why SBIFML Trusted by over Servicing investors across 15 million Investors ~99% pin codes of the country Managing assets Investment team of ~70 members for over 37 years with an average experience of 15 years of the country Signatory of UNPRI & CFA Asset An array of digital tools Manager Code of Con
Slide 32: Disclaimer
Disclaimer This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/ securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calcul
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